CHS(CHSCL) - 2025 Q3 - Quarterly Results

Q3 FY2025 Financial Highlights CHS reported a net income of $232.2 million on $9.8 billion in revenue for Q3 FY2025, a decrease from the prior year, primarily due to an Energy segment loss offset by strong Ag segment results Overall Financial Performance CHS reported a net income of $232.2 million on $9.8 billion in revenue for the third quarter of fiscal 2025, a decrease from the $297.3 million net income on $9.6 billion revenue in the same period of fiscal 2024 Consolidated Financial Results (in millions) | Period | Metric | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | :--- | | Q3 (ended May 31) | Net Income | $232.2 | $297.3 | -21.9% | | | Revenues | $9,800 | $9,600 | +2.1% | | First Nine Months | Net Income | $401.2 | $990.5 | -59.5% | | | Revenues | $26,900 | $30,100 | -10.6% | - The CEO, Jay Debertin, attributed the strong third-quarter performance in agronomy and retail to favorable spring weather, which allowed CHS to effectively meet owner's planting needs[2] - Key factors influencing the quarter's results include stronger Ag segment earnings, lower refined fuels production due to planned maintenance, and solid contributions from equity method investments[4] Segment Performance Analysis This section details the financial performance of CHS's key business segments, including Energy, Ag, Nitrogen Production, and Corporate and Other Energy The Energy segment reported a pretax loss of $50.1 million for Q3 FY2025, a sharp reversal from the $97.9 million pretax income in the prior-year period Energy Segment Pretax Earnings (in thousands $) | Period | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Q3 | $(50,088) | $97,850 | $(147,938) | | Nine Months | $(113,794) | $416,264 | $(530,058) | - Key drivers for the loss include: - Planned major maintenance at the McPherson refinery leading to lower refined fuels production[4] - Increased costs associated with renewable fuel credits[5] Ag The Ag segment delivered strong results with a pretax income of $151.0 million, a $42.5 million increase compared to the same period last year Ag Segment Pretax Earnings (in thousands $) | Period | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Q3 | $151,040 | $108,535 | +$42,505 | | Nine Months | $272,140 | $335,106 | -$62,966 | - Performance was positively impacted by higher volumes and margins for wholesale and retail agronomy products due to favorable market conditions[4][5] - Performance was negatively impacted by decreased margins for grain, oilseed, and oilseed processing, attributed to the timing of mark-to-market adjustments and global market conditions[5] Nitrogen Production The Nitrogen Production segment posted a slight increase in pretax earnings to $54.6 million for Q3 FY2025, up $2.2 million from the prior year Nitrogen Production Segment Pretax Earnings (in thousands $) | Period | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Q3 | $54,610 | $52,366 | +$2,244 | | Nine Months | $100,195 | $125,834 | -$25,639 | - The earnings increase was mainly due to favorable market conditions for urea[3] Corporate and Other The Corporate and Other segment's pretax earnings more than doubled to $103.3 million, a $52.2 million increase from the prior-year quarter Corporate and Other Segment Pretax Earnings (in thousands $) | Period | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Q3 | $103,293 | $51,117 | +$52,176 | | Nine Months | $174,439 | $135,168 | +$39,271 | - The substantial increase in earnings was mostly due to strong results from the Ventura Foods joint venture[6] Company Overview and Forward-Looking Statements This section provides an overview of CHS Inc. as a leading agribusiness cooperative and includes important disclaimers regarding forward-looking statements Company Profile CHS Inc. is the largest farmer-owned cooperative in the United States and a leading global agribusiness, operating in 65 countries with approximately 10,000 employees - CHS is the largest farmer-owned cooperative in the U.S. and a leading global agribusiness[9] - The company serves customers in 65 countries and employs about 10,000 people[9] - Recorded revenues of approximately $39 billion in fiscal year 2024[9] Forward-Looking Statements Disclaimer This report contains forward-looking statements based on current expectations, which are subject to inherent risks and uncertainties, and are not guarantees of future performance - Forward-looking statements are based on current beliefs and assumptions about the future, not historical facts or guarantees of future performance[10] - Actual results may differ materially due to various factors, including commodity price changes, global conflicts, government policies, and inflation, as detailed in the company's Form 10-K[10] - CHS has no obligation to update any forward-looking statements, which are valid only as of the date they are made[11]